Is ObamaCare a Good Deal for States?

The Washington Post reported on a new report from Kaiser Family Foundation which found that States will receive more than $9 in federal money for every $1 they spend to cover low-income residents under the Affordable Care Act.   Medicaid is a federal-state partnership that varies from state to state. So the consequences for state budgets will be different in each case.

"Medicaid is one of the two main ways that Obama’s law expands coverage to most of the 50 million uninsured U.S. residents. As a broader Medicaid safety net picks up more low-income people, new health insurance markets called exchanges will offer subsidized private coverage to the middle class."

"Under the law, Medicaid will be expanded to cover people up to 138 percent of the federal poverty line, or about $15,400 for an individual. It’s mainly geared to low-income adults with no children at home, who currently cannot get Medicaid coverage in most states."

Some of the main findings:

— States that reject the expansion could still face a substantial increase in their Medicaid costs, as people already eligible for the program but not currently enrolled are prompted to sign up.

— States will save $18 billion from no longer having to offset the cost of charity for low-income uninsured people.

— Some states will actually come out ahead. New York, Massachusetts, Wisconsin and others that already cover low-income childless adults will be able to reap a more generous federal matching rate than they currently get.

— Texas, the state with the highest percentage of uninsured residents, would see a 6 percent increase in Medicaid spending. About 2.4 million residents would be added to the Medicaid rolls.

 

 

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